ABM Resources commences drilling at Lake Mackay iron-oxide copper-gold targets

ABM Resources (ASX: ABU) has commenced deep reverse circulation (RC) drilling to test various targets at the Lake Mackay Project Area in the Northern Territory.

These targets complement the company’s 1.67 million ounce Twin Bonanza Gold Camp Project, where drilling recently extended the Caribbean Zone and Buccaneer Gold Deposit.

ABM’s Phase One Program is testing these relatively early-stage targets with drilling comprising 16 holes for 5700 metres and will test five individual targets with holes 350 metres to 400 metres deep.

The five targets include the three Tekapo targets, the Manapouri Target and the Te Anau Target.

Darren Holden, managing director of ABM Resources, said “ABM has a commanding regional portfolio which is an excellent complement to the company’s leading Twin Bonanza Gold Camp Project. The Lake Mackay region remains one of the most underexplored geological terranes in Australia.

"There is evidence from previous reconnaissance work that copper-gold mineralised bodies exist in the Lake Mackay area; however, previous work has failed to adequately test the bedrock beneath the regolith / oxide profile."

The Tekapo Prospect is associated with iron oxide (haematite) gossanous breccia at the surface which, along with the broad suite of anomalous metals, suggests an Iron Oxide Copper-Gold (IOCG) mineralisation model similar to the Olympic Dam and Prominent Hill mines in South Australia, the Tennant Creek systems in the Northern Territory and Ernest Henry in Queensland.

At the Tekapo 1 Target six holes are following up on the 1200 metres x 600 metres regolith Gold-Copper-Molybdenum-Cobalt-Bismuth anomaly associated with iron-oxide breccias.

Previous surface rock samples included one sample grading 32.6g/t gold. Previous shallow regolith drill results included: 16 metres averaging 3.4 grams per tonne (g/t) gold and 4 metres averaging 2.67% copper.

At the Tekapo 2 Target one hole is testing a large gravity geophysical anomaly located 1 kilometre north of Tekapo 1 under cover sediments.

At the Tekapo 3 Target one hole is testing a large magnetic geophysical anomaly 4 kilometres west of Tekapo 1 under cover sediments.

The Manapouri Target comprises four holes testing geophysical targets and associated gold-arsenic anomalism.

The Te Anau Target consists of four holes testing a large arsenic anomaly associated with major geological structures (faults) interpreted from magnetic data.

ABM holds approximately 8000 square kilometres of exploration licenses and exploration license applications in the area to the east of Lake Mackay in the Northern Territory.

The projects are located about 400 kilometres west of Alice Springs and are accessible by road via the town of Nyirripi.

The Lake Mackay drill tests form part of ABM’s regional strategy which in 2011 has included testing at the Kroda Gold Project on the Barrow Creek Regional Project. Assay results are pending from drilling at the Kroda Gold Project.

Meanwhile, ABM is continuing exploration at the Twin Bonanza Gold Camp projects including extensions to the Buccaneer Porphyry Gold Deposit, the Old Pirate High Grade Gold Prospect and other targets.

The company expects further results shortly.

Originally published at: http://www.proactiveinvestors.com.au/companies/news/18927/abm-resources-commences-drilling-at-lake-mackay-iron-oxide-copper-gold-targets-18927.html